{ "docId": "019dd923-622c-750b-8b9a-40e2965928db", "docSlug": "e5bffbaac707", "documentTitle": "TransMedics (TMDX)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-01-10 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 64, "pageCount": 342, "prevPage": 63, "nextPage": 65, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses direct quotes from MGH staff to argue that TransMedics' business model is built on control rather than efficiency.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/64", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-64", "components": [ { "bbox": null, "kind": "callout", "text": "MGH stated the NOP service is about control, not cost savings or efficiencies – “as an institution, you have to start asking...is this viable?”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a975-6061212e5ccc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.85, "x": 0.07, "y": 0.12 }, "kind": "paragraph", "text": "MGH stated the NOP service is about control, not cost savings or efficiencies – “as an institution, you have to start asking...is this viable?” Shockingly, the transplant administrator indicated that TransMedics logistics are a circus where aircraft or staff may be unavailable, jeopardizing MGH’s ability to procure the organ. However, TransMedics allegedly remains inflexible even in such emergencies and forces the center to sit on its hands until their plane is available, as a condition for accessing the device. In those situations, MGH has to find its own plane for its procurement team but still pay for a second plane TransMedics sends with its device operator – “it’s about control...if you can control the surgeon, the team, the airplane – everything – as a consumer, I’m stuck”; “sometimes, we can’t even get a plane because of the delay...where we have to then field another jet because we’ve got 90 minutes...that adds to the additional cost.”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b107dc3-78a9-42db-830a-9327ff1f0e28", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.85, "x": 0.07, "y": 0.6 }, "kind": "quote", "text": "“I think it’s about control. So, if you can control the surgeon, the team, the airplane - everything - as a consumer, I’m stuck. I might know what the cost would be, but then there are all these delays. You mentioned the two-hour additional warm ischemic time—that eats into my cost. Sometimes, we can’t even get a plane because of the delay in the procuring arena where we have to then field another jet because we’ve got 90 minutes. So, that adds to the additional cost, too. But I would say when it comes down to why their team needs to be the one and only to make the decision, I think that’s a control thing. I think that’s them making the call. And I have no control over that.” – Veteran transplant administrator/executive at Massachusetts General Hospital", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b0ac965-c8a6-4748-9cfb-fde99e4d1e4b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.85, "x": 0.07, "y": 0.78 }, "kind": "quote", "text": "MGH asking “is this viable?” “...so there may be a feeling of being kind of forced or leveraged into taking on that service. At some point, the cost, the economic analysis—I think they’re bordering on eating into all of the margin or most of the margin that would be gotten from doing another case of liver transplantation. I think that when you start pushing up against that, at least as an institution, you have to start asking the question, is this viable?” – Transplant hepatologist in a leadership role at Massachusetts General Hospital", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c08d56c0-85a3-435b-8923-99de7e4317e3", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“I think it’s about control. So, if you can control the surgeon, the team, the airplane - everything - as a consumer, I’m stuck. I might know what the cost would be, but then there are all these delays. Sometimes, we can’t even get a plane because of the delay in the procuring arena where we have to then field another jet because we’ve got 90 minutes. So, that adds to the additional cost, too. But I would say when it comes down to why their team needs to be the one and only to make the decision, I think that’s a control thing. I think that’s them making the call. And I have no control over that.” — Veteran transplant administrator/executive at Massachusetts General Hospital; “...so there may be a feeling of being kind of forced or leveraged into taking on that service. At some point, the cost, the economic analysis—I think they’re bordering on eating into all of the margin or most of the margin that would be gotten from doing another case of liver transplantation. I think that when you start pushing up against that, at least as an institution, you have to start asking the question, is this viable?” — Transplant hepatologist in a leadership role at Massachusetts General Hospital", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a975-6484abc13878", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3b5e23fe-7986-417f-9ef4-4ff36c7c0153", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.85, "x": 0.07, "y": 0.55 }, "kind": "title", "text": "Bundling is to lock in and control customers; NOP service and logistics are not particularly efficient and increase cost", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0a60afea-3f3e-49ca-83d2-8c9a5ac7c573", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.85, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "Case study 1: Massachusetts General Hospital (cont’d)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f78c3837-f8ef-4205-a0b2-313061b12816", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }